Adjusting Entries: Unearned rent at 1/1/10 was $10,300 and at 12/31/10 was $6,000. The records indicate cash receipts from rental sources during 2010 amounted to $50,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. For each journal entry write Dr for debit and Cr for cr
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Northville Paper and Paint deposits all receipts and makes all payments by check. The following information is available from the cash records: Month of May Results Per Bank Per Books Balance May 31 $27,995 $24,355 May depo
Robert's Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for $5,000. It has variable costs totaling $2,800 and fixed costs of $1,000 per unit, based on an average production run of 5,000 units. It normally has four production runs a year, with $400,000 in setup costs each time. Plant c
Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is $30. There are no flag displays on hand but Liberty had scheduled 60 equal production runs of
33. HD Inc. produced a variety of products for the computing industry. CD burners are among its most popular products. The company's controller, Kate Jergens, spoke to the company's president at a meeting last week and told her that the company was doing well, but that the financial picture depended on how product costs and net
Happy Daze Game Co. produces a wildly popular board game called Stump Me! The company is known for both its progressive and interesting board games and its willingness to embrace nontraditional business techniques. Recently, the company's controller, Renee McKim, suggested to the president that she accumulate data based on an ac
Gigi LeBlanc founded a company to produce a special bicycle suspension system several years ago after her son, who worked for a bicycle delivery service, was hurt in a riding accident. The market's response has been overwhelmingly favorable to the company's new suspension system. Riders report feeling that they experience fewer
Pritchett Enterprises manufactures hiking and outdoor equipment. The company's plan in western Colorado has recently seen dramatic changes in manufacturing process. Management is concerned that the current cost system no longer captures the impact of the diversity of activities involved in its production processes. As a result,
49. The HITEC Company manufactures multimedia equipment designed to be sold to universities. The company's southeastern plant has undergone production changes that have resulted in decreased usage of direct labor and increased usage of automated processes. As a result, management no longer believes that its overhead allocation m
Spreadsheet please 45. Surfs Up manufactures surfboards. The company produces two models: the small board and the big board. Data regarding two boards are as follows: Products Direct Labor Hours per Units Annual Production Total Direct Labor Hours Big 1.5 10,000 boards 15,000 Small 1.0
Thiel Boots Sales $1,000,000 Cost of goods sold direct materials 300,000 direct labor 160,000 est.overhead 240,000 700,000 Gross profit 300,000 Selling and adm expenses 175,000 Net income $125,000 Expected to sell 10,000 pairs of boot est. of production
DS Company has identified the following cost pools and activity rates: Activity Cost Pools Activity Rates Supporting direct labor $4 per direct labor hour Machine processing $3 per machine hour Machine setups $30 per setup Production orders $11 pe
Why do changes in accounting principles require clarification? Is it the same clarification as for changes in accounting estimates? Please explain in detail.
Show all of your work. Q3. The Tanner Corporation is a highly successful marketer of raw leather to producers of various lines of leather products. The company is considering expanding by selling to makers or custom leather automobile seats. Tanner's marketing VP Estimates that this market can add $700,000 in new sales.
1. Many analysts place more importance on the income statement than they do on the statement of cash flows. Do you think the problems at companies such as Enron would have been uncovered earlier if more emphasis was placed on the statement of cash flows? Why or why not?
Company A is a wholesale company that purchases items from manufacturers and sells them to retail establishments. On December 31, 2010 Company A had the following in ending inventory: Product Code Quantity Cost Each Current Replacement Cost Each YZ 1,970 $58 $63 CT 3,280 38 36 FA 1,640 51 57 GG 660 109 125 IR 1,3
When is a taxpayer required to pay the AMT? What are the differences between the AMT and regular tax? What are the differences between tax preferences and adjustments concerning the AMT? What are some examples of each?
Book vs. Tax (MACRS) Depreciation Elwood Inc. purchased computer equipment on March 1, 2010, for $36,000. The computer equipment has a useful life of 10 years and a salvage value of $3,000. For tax purposes, the MACRS class life is 5 years. a) Assuming that the company uses the straight-line method for book and tax purpo
Calculate Penguin's cash flow from financing & Investing activities Penguin's Comparative Balance Sheets December 31, 2009 Assets 12/31/2009 12/31/2008 Cash $8,000 $6,000 Accounts Receivable $2,000 $1,000 Inventory $2,000 $3,000 Investments $4,000 $2,000 Property, Plant and Equipment $17,000 $15,000 Accum
You are an accountant at evergreen, inc., and your boss has asked you to prepare the company's statement of cash flows for an upcoming shareholders' meeting. He gave you the company's 2009 comparative balance sheet (see attachment) Calculate the Change in cash due to financing activities =$ **** Note the change in retained
Identify the following costs as fixed or variable. Costs related top plane trips between San Diego, California, and Orlando, Florida, follow. Pilots are paid on a per trip basis. a. Pilots' salaries relative to the number of trips flown. b. Depreciation relative to the number of planes in service. Cost of refreshment re
A share of common stock has just paid a dividend of $2. If the expected long-run growth rate for this stock is 5%, and if investors required rate of return is 10.5%, what is the stock price? a. $35.39 b. $38.80 c. $37.23 d. $38.18 e. $39.14
4. Which of the following statements is correct? a. The characteristics line is the regression line that results from plotting the returns on a particular stock versus the returns on a stock from a different industry. b. The distance of the plot points from the characteristics line is a measure of the sto
If your expected rate of return is 16 percent, how much should you be willing to pay for this stock today?
3. Assume that you plan to buy a share of XYZ stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $9.25 at the end of Year 2. In addition, you expect to sell the stock for $150 at the end of Year 2. Question: If your expec
ABC Corp began operations on Jan 1, 2008. During 2008, the company made sales of $200,000, of which $15,000 remained outstanding in accounts receivable at the end of the year. The company incurred and paid $105,000 of various operating expenses during the year, and also prepaid its $1,000 Jan 2009 rent in December 2008. Addition
Review the Avis Rent-A-Car organization and its applicability for Activity Based Costing (ABC). Based on a product/serve in Avis Rent-A-Car, use ABC and find 3 activities for ABC and the cost drivers for these activities. Then, in regards to each cost driver, estimate the application rates. Include: Time period/activity
Activity Based Costing The New Millenium Linen Company is a small family company that produces and sells towels. Millenium sells the towels to three types of stores: department stores, mid-sized specialty stores and small gift shops. The company is doing well and the CEO wants to expand the business. The contribution margin
Carter Air Lines is now in the terminal year of a project. The equipment originally cost $20 million, of which 80% has been depreciated. Carter can sell the used equipment today to another airline for $5 million, and its tax rate is 40%. What is the equipment's after-tax net salvage value?
When might a negative cash flow be considered positive? Provide an example and explain.